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GV Delegates seated in the Great Hall of the People in Parking
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CU Chinese official speaking (Peng Zhen, Vice Chairman of the Congressional standing committee and former mayor of Peking)
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TRACKING SHOT Ministers seated
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CU PAN ALONG FROM Prime Minister Hua Kuo Feng (seated nearest camera) TO The new Prime Minister Zhao Ziyang (wearing white shirt)
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Still frame of Zhao Ziyang
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GV AND CU Delegates seated listening as Peng zhen continues speaking (4 shots)
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Delegates gathered in the Great Hall of the People to hear Peng Zhen, a former Mayor of Peking, outline the new tax plan. Mr. Peng said individual income tax would be imposed for the first time in China. However, it will exclude almost everyone in the country, because it will only be levied on those whose incomes exceed 800 Yuan (480 Dollars) per month, mainly foreign nationals.



The Prime Minister, Hua Kuo Fens, officially announced that he would resign as Prime Minister on Sunday (7 September) to make way for 61-year-old Zhao Ziyang.



Though Mr. Zhao, a former head of Sechuan province, will replace Mr. Hua, Mr. Hua will retain his powerful post as chairmen of the Communist Party.



Meanwhile, at the Congress, Mr. Peng announced further tax measures aimed mainly at foreign firms. A draft bill was presented proposing a tax rate of 33 per cent on profits from joint ventures between Chinese companies and foreign investors. Mr. Peng also said that a further tax of 10 per cent would be imposed on profits remitted out of China. The Congress made other amendment to current Chinese laws. Men will have to wait until they are 22 years-old before they can marry. But women will be able to marry at twenty.





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Script is copyright Reuters Limited. All rights reserved

Background: China's parliament, the People's Congress, met in Peking on Tuesday (2 September) to continue its programme of reform in all facets of the country's life. Among the decisions taken was the adoption of a new tax on personal incomes. it's main aim is to tax foreigners working in China. While the Congress was in session, it was announced that Hua Kuo Feng was to step down as China's Prime Minister.